With a corpus of $50 million, Tanglin is amongst a brand new set of enterprise funds backed by home web entrepreneurs, a development that has picked up considerably up to now two years.
The fund, which began operations late final 12 months, will concentrate on backing early-stage know-how startups in India and Southeast Asia. With a median first cheque of $three million, it’s going to look to take a position throughout 10-12 startups.
“India and Southeast Asia have comparable macro outlook and are fast-growing economies with a inhabitants which is quickly adopting a digital way of life. We consider that there’s a large alternative for know-how to create worth by means of organising unorganised and fragmented sectors, making distribution extra environment friendly by going direct-to-consumer,” Venkatesh instructed ET.
Venkatesh, Tanglin’s managing associate, declined to reveal names of traders within the fund. “We’re focusing on a $50 million fund and have raised a major majority of that from greater than 15 marquee restricted companions or LPs together with know-how entrepreneurs, establishments and trade leaders,” he instructed ET.
LPs are sponsors of a fund with no direct involvement. Bansal, Kumar, Neary and Krishnamurthy, didn’t touch upon their participation within the fund as of press time Monday.
Named after a residential neighbourhood in Singapore, the fund is seeded by Venkatesh and Yeo, who till not too long ago labored within the working staff of Tiger International, one of the crucial fervent backers of the India client web story.
Founders investing in funds
Whereas backing a fund is among the riskiest asset lessons, enterprise funds backed by home web entrepreneurs have seen a pointy enhance.
Entrepreneurs say investing in funds provides them an oblique publicity to rising companies with out spending time evaluating corporations but preserving their pores and skin within the sport. “In case you consider within the macro thesis, a 5% monetary portfolio publicity to funds is sensible,” mentioned an entrepreneur who’s an investor in two early-stage enterprise funds.
Entrepreneurs who’ve invested in enterprise funds embody Binny Bansal, MakeMyTrip’s Deep Kalra, Naukri.com’s Sanjeev Bikchandani, TaxiForSure cofounder Aprameya Radhakishna, and a clutch of former Flipkart executives.
Fund managers say that till not too long ago, entrepreneurs didn’t have many choices by way of enterprise publicity since most funds had the backing of enormous institutional restricted companions. Nonetheless, issues are altering and there’s a rising realisation that entrepreneurs and trade professionals add vital worth to early-stage centered funds.
Entrepreneurs give funds an added leverage of deal stream, and market intelligence, which is important for early stage investing. Some early stage funds backed by entrepreneurs embody Chiratae Ventures, Blume Ventures, pi Ventures, Stellaris Enterprise Companions and Kae Capital.